Stock futures up amid earnings flood

DaimlerChrysler surges as Schrempp to leave

LONDON (MarketWatch) -- U.S. stock market futures rose on Thursday amid another flood of earnings, with DaimlerChrysler and AstraZeneca gaining ground after the heads of both companies said they'd leave.

Crude oil futures rose 34 cents to $59.45 a barrel, while the dollar saw some gains against the yen.

First-time filings for state unemployment benefits rose by 5,000 to a seasonally adjusted 310,000 last week, the Labor Department said Thursday. Economists surveyed by MarketWatch were expecting claims to rise to about 317,000. The four-week average of new claims dropped by 250 to 318,250, while continuing jobless claims rose by 32,000 to 2.60 million.

Focus stocks

DaimlerChrysler
DCX
shares jumped close to 10% in Frankfurt trading after saying CEO Jurgen Schrempp will step down at the end of the year, to be replaced by the head of Chrysler, and reporting a 28% profit rise. See story.

British pharmaceutical AstraZeneca PLC
AZN, +0.56%
rose over 4% in London after saying that its chief executive Tom McKillop will retire at the end of 2005 and raising its 2005 financial targets.

Bristol-Myers Squibb
BMY, -1.22%
reported second-quarter earnings of $1 billion, or 50 cents a share, up from $527 million, or 27 cents a share in the same period a year ago. Revenue rose to $4.89 billion from last year's $4.82 billion. Analysts surveyed by Thomson First Call had been expecting earnings of 36 cents a share and revenue of $4.8 billion, on average. The drugmaker raised its 2005 earnings estimate, including special items, to $1.49 to $1.59 a share from $1.35 to $1.45 a share, primarily due to the expected sale of its consumer medicines business

Dow Chemical
DOW, -0.88%
said second-quarter net income rose 85% to $1.27 billion, or $1.30 a share, with sales up 16% to $11.5 billion. After adjusting for a 10 cent a share benefit, its earnings would've missed Thomson First Call-compiled consensus forecasts of $1.22 a share. Prices rose 20% from a year ago, and the company said it expects year-on-year earnings growth through the remainder of the year, as well as further earnings growth in 2006.

Exxon Mobil Corp.
XOM, -1.14%
reported a 32% increase in net income to $7.64 billion, or $1.20 a share, compared with $5.79 billion, or 88 cents a share, posted a year ago. Excluding a $200 million charge to cover a judgment against it, Exxon Mobil would have earned $7.84 billion, or $1.23 a share. Analysts polled by Thomson First Call expected earnings of $1.24 a share, on average.

Royal Dutch Shell
RDS.A, -1.44%
reported a 34% profit rise, but the oil major missed consensus forecasts and said it would spend more on exploration.

Beazer Homes USA Inc.
BZH, +0.12%
reported net income of $112.7 million, or $2.50 a share, for the third quarter ended June 30, up from $59.7 million, or $1.42 a share, earned in the same period in fiscal 2004. The homebuilder's quarterly revenue reached $1.29 billion from $1.01 billion, up 28%. Analysts, on average, had been looking for the company to earn $2.05 a share on revenue of $1.24 billion, according to estimates compiled by Thomson First Call. Beazer Homes said it's raising its full-year profit range to $8 to $8.25 a share, up from $7 to $7.25 previously; Wall Street's average stands at $7.26.

Hartford, Conn.-based insurer Aetna Inc.
AET, -1.27%
said second quarter net income rose 43.1% to $409.7 million, or $1.35 a share, from higher membership levels, strong underwriting results, and continued general and administrative expense efficiencies. Excluding reserve development, its operating earnings of $1.20 a share were ahead of Thomson First Call-compiled consensus forecasts of $1.08 a share.

St. Paul Travelers Companies, Inc.
STA, +0.00%
reported second-quarter net income of $1.07 billion, or $1.52 a share, compared to a net loss of $275 million, or 42 cents a share, in the year-ago period. Operating income in the latest quarter was $1.38 a share. A survey of analysts by Thomson First Call forecasted earnings of $1.14 a share

Siemens
SI
the German industrial conglomerate and General Electric rival, fell over 3% as fiscal third-quarter profit fell 52% and disappointed with its earnings outlook. See Siemens story.

Broker calls

Anheuser-Busch
BUD, -0.28%
was downgraded to sell from hold by Citigroup Smith Barney, as the brewer posted "disappointing" second quarter results and lowered estimates. "This is the fourth time management has lowered its '05 guidance and we are concerned it may not be the last," the broker said. Its future looks "fairly bleak," the broker added.

Computer Associates
CA, -0.33%
was downgraded to peer perform at Bear Stearns, with the broker citing "somewhat worrisome" billings, bookings and cash flow. "We believe the significant flux (new management, reorgs, acquisitions, new sales compensation changes) that the company is now experiencing has increased its risk profile over the near to medium term, which offsets the potential upside over at least the next couple of quarters," the broker said.

Honeywell International
HON, -0.19%
was upgraded to buy from neutral at Merrill Lynch. Merrill also lifted earnings estimate to $2.15 from $2.10, and to $2.60 in 2006 from $2.40. "Our higher EPS forecast is driven by expected on-going margin expansion helped by Aerospace restructuring and other operational improvements, and lower anticipated repositioning, environmental and other charges," the brokerage said.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.